The UK's largest private company, Ineos, has been forced to seek a waiver on its banking covenants for the next two quarters to avoid a potential breach of those terms. The chemical company, that is high in debt, is struggling with a loss on its large inventory of oil following the decline in petrochemicals prices. Besides, demand has deteriorated for its entire portfolio of chemical products, mainly due to deterioration in the housing and automotive sectors, two big users of its products. The oil fall has dented the value of the company's inventory of 10 mln barrels. The covenants Ineos wants waived test leverage, interest cover and debt servicing. Ineos's debt is four times its earnings before interest, taxation and amortisation, but the company's management indicated covenants would be in breach if the multiple rose to 4.6. The company will present a new five-year business plan to its lenders by April, when it will ask for a longer term reset of covenants. Ineos has indicated that if necessary they would consider selling assets to lower their leverage.